Shopify Store Set Up

Explanation of Shopify Payments

Last modified: May 25, 2026

Updated May 25, 2026 Expert reviewed

Shopify Payments is Shopify’s built-in payment processor, available on every Shopify plan in supported countries. It lets your store accept credit cards, debit cards, and digital wallets directly through Shopify without setting up a separate gateway like Stripe or PayPal. This guide covers how Shopify Payments works, what countries support it, the current fees by plan, when to use it versus a third-party processor, and the practical limits worth knowing before you commit.

With Shopify Payments, you can accept all major payment methods the instant you build your website. It is the native payment processing system for Shopify stores, offering tight integration with Shopify checkout and financial reporting.

Key Takeaways

Shopify Payments offers a direct, hassle-free way to accept payments.

Note the regional availability of Shopify Payments and consider alternatives if necessary.

Using Shopify Payments can lead to lower fees, advanced fraud protection, and useful analytics.

What Regions Can Shopify Payments Work in?

Shopify Payments is only available in some countries and regions. The main countries that can use Shopify Payments include the United States, Canada, the EU, the United Kingdom, Japan, Hong Kong, Switzerland, New Zealand, and Australia.

If you are not in any of these areas, then there are other payment options that you can use. For instance, you can have PayPal or Stripe (where available).

What Are the Advantages of Using Shopify Payments?

There are several pros to using Shopify Payments. These include the following factors:

Flexible Checkout and Payment Methods

With Shopify Payments, customers can use a variety of payment methods. They can use credit cards, debit cards, Apple Pay, Google Pay, and Shop Pay. Customers don’t need to leave the website to place an order and submit payments for goods or services. Shopify stores using Shopify Payments automatically meet PCI compliance for secure payment processing.

Shopify Payments also lets you customise the checkout page to match the brand. You can sell in multiple languages and currencies. Accelerated checkout (Shop Pay) means returning customers can check out in a single tap.

Easy to Set Up and Use

Shopify Payments is already integrated with all Shopify subscriptions, making it easy to accept and process customer payments after launching a new store. Because it is part of the Shopify ecosystem, there is no third-party setup required, and orders plus payouts both live in the same admin.

Because Shopify Payments is built for the Shopify platform, you can track orders and payments together. You can also customise your Shopify payout schedule by country, enable fraud filters, and run fraud analysis to flag suspicious transactions.

Transparent, Flat-Rate Fees

Shopify Payments fees are simple to understand. The fee does not change based on the card the customer uses, and the rates are competitive in the market. The same flat rate applies to online and in-person (POS) payments, and unlike most processors there is no separate fee for manually keyed-in payments.

Shopify Plus Payments

If you are using Shopify Plus, you can benefit from negotiated payment processing rates. Pricing is custom and depends on volume and region. For most Plus merchants the effective rate is well below the standard plan rates, but Plus also starts at around $2,300 per month so the math only works once you are at meaningful volume.

The Cons of Shopify Payments

There are two significant disadvantages of using Shopify Payments:

Monthly Fee for the Underlying Plan

You need a Shopify plan to use Shopify Payments at all. The plan fee is not for Shopify Payments specifically; it covers hosting, the storefront, themes, and the rest of the Shopify platform. But it does mean Shopify Payments is not free in the way Stripe or PayPal can be on a standalone basis.

Fee for Third-Party Gateways

The fee for third-party gateways adds up. If you choose to use PayPal or Stripe in addition to Shopify Payments (or instead of it where Payments is not available), Shopify charges an additional transaction fee on top of what the gateway charges. The combined cost of selling through a non-Shopify-Payments gateway is therefore much higher than using Shopify Payments itself.

What Are the Charges for Shopify Payments? (2026 Pricing)

Here are the current Shopify plan costs and Shopify Payments transaction fees as of 2026. Shopify updates pricing periodically, so check the official Shopify pricing page for the latest numbers before committing.

Shopify Starter

The monthly cost for Shopify Starter is $5. There is no full storefront; Starter is designed for selling via social channels and direct links. Transaction fees on Shopify Starter are 5% of each transaction.

Basic Shopify

Basic Shopify is the entry-tier full-storefront plan. The monthly cost is around $39/month (billed monthly; annual billing is roughly $29/month). Shopify Payments fees are 2.9% + 30 cents per online transaction. In-person POS transactions are 2.6% + 0 cents.

Shopify (mid-tier)

The Shopify plan sits at around $105/month billed monthly (around $79/month on an annual plan). Shopify Payments fees are 2.7% + 30 cents per online transaction; 2.5% + 0 cents in-person.

Shopify Advanced

Shopify Advanced runs around $399/month billed monthly (around $299/month on an annual plan). Shopify Payments fees are 2.5% + 30 cents online; 2.4% + 0 cents in-person.

Key Information about Shopify Payments

There are some important facts to know about Shopify Payments:

Unlike other payment processors, Shopify does not charge additional monthly fees for the use of the payment system itself. There are also no setup fees, withdrawal fees, or cancellation fees beyond your standard plan cost.
Chargeback fee. If you experience a chargeback on your account, Shopify charges a $15 fee. If you win the chargeback, Shopify refunds the fee.
POS Pro. All Shopify plans except Starter include Shopify POS Lite. POS Pro adds advanced retail features and costs about $89/month per location.

You can also send a payment link through draft orders for phone or custom orders. With Shopify you can have multiple stores under one account; the number of stores depends on your plan, with higher-tier plans allowing more stores.

Alternatives to Shopify Payments

There are alternatives to Shopify Payments, particularly useful if you are outside the supported regions:

PayPal

PayPal is the most common alternative. Many apps help you connect a Shopify store to PayPal. PayPal is widely trusted by consumers and offers buyer protection that some shoppers prefer over card-only checkout. The trade-off is a higher combined fee when PayPal runs alongside Shopify Payments.

Stripe

Stripe is a payment processor similar to PayPal. Stripe has lower transaction fees than PayPal in most regions, but Stripe holds funds for slightly longer before payout, which can affect cash flow. Apps on Shopify let you integrate Stripe as a payment gateway. For specifics on payout timing, check our guide on when Shopify pays you.

Square

Square offers free website hosting and a flat-fee, pay-as-you-go pricing structure. There is no monthly fee on the Square platform itself. You can integrate Square into your Shopify payment gateway. Square is particularly strong for stores that also need a solid POS system.

Cash on Delivery

If you run a local business, you might want to consider cash on delivery. Taking cash means you avoid payment processing fees entirely. The trade-off is handling cash manually, which adds risk of mistakes and theft. If COD fits your model, install a cash-on-delivery app from the Shopify app store.

Recommended: 6 Best Shopify COD Apps - 2026

#	Name	Image
1		Verify COD Orders by auto call
2		LeadForm: COD ‑ Order Form
3		COD Order Confirmation
4		EasyOrder ‑ Order Form for COD
5		EasySell ‑ Easy Order Form
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FAQs

Is Shopify Payments available worldwide?

No, Shopify Payments is currently available in select countries, mainly in North America, Europe, and some other regions. Check Shopify’s official website for the most up-to-date list of supported countries.
Can I accept international currencies with Shopify Payments?

Yes, you can accept payments in multiple international currencies using Shopify Payments. This simplifies the purchasing process for customers worldwide, as they can shop in their preferred currency.
Are there any payout delays with Shopify Payments?

Payouts from Shopify Payments typically take a few business days to reach your bank account, depending on your location and banking institutions. Some regions may experience longer delays.
Should I use Shopify Payments or Stripe?

For most Shopify stores in supported countries, Shopify Payments is the better choice. It has the same or lower transaction fees than Stripe in most regions, requires no separate gateway setup, and avoids Shopify’s third-party transaction fee (which adds 0.5-2% on top of Stripe’s own rates). Stripe is the right choice if you sell on multiple platforms beyond Shopify, if you are in a country where Shopify Payments is not available, or if you need Stripe’s developer APIs for custom checkout flows. For a pure Shopify store, Shopify Payments wins on simplicity and effective cost.
What are the requirements to use Shopify Payments?

You need three things: a Shopify plan (any plan except Starter on some regions), a business address in a supported country, and the ability to provide tax and banking details to Shopify. Shopify also requires you to comply with their list of prohibited and restricted businesses, which excludes adult content, gambling, and certain regulated products. If your products are in a restricted category, you will need a third-party gateway instead. The full requirements appear during Shopify Payments onboarding in your admin.
Does Shopify Payments charge a currency conversion fee?

Yes. When a customer pays in a currency different from your payout currency, Shopify Payments charges a currency conversion fee of around 1.5% in the US and 2% in most other regions on top of the regular transaction fee. This is competitive with what Stripe and PayPal charge for similar conversions, but it is worth factoring into pricing if you sell across borders frequently. Settling in the same currency you sell in (via multi-currency Shopify Markets) is the way to minimise this fee.
How long does Shopify Payments take to pay me?

Standard payout schedule is 2 business days after the transaction for US merchants on standard Shopify plans, 3 business days in Canada and the UK, and 4-5 business days in some other regions. Shopify Plus merchants get faster payout options. You can adjust the payout frequency (daily, weekly, monthly) under Settings > Payments > Payout schedule. The first payout after activating Shopify Payments takes longer (typically 5-7 days) while Shopify verifies your account.

Getting More Out of Shopify Payments

Multi-Currency Support

You can broaden your global market presence by offering customers the option to shop in their local currency. Shopify Payments handles multi-currency transactions automatically.

Refunds and Chargebacks

Shopify Payments manages refunds and chargebacks directly in the same admin you use for orders and payouts. There is no separate dashboard to learn.

Customising Payment Options

Shopify Payments lets you customise payment interface elements to match your brand’s look and messaging on checkout pages.

Driving Growth with Shopify Payments

Shopify Balance

Shopify Balance gives you faster access to your earnings, which means cash you can reinvest into the business sooner.

Shop Pay Installments

Shop Pay Installments lets customers split payments over time. This can lift conversion on higher-priced products by making the purchase easier to budget for.

Shopify Capital

Shopify Capital offers funding based on your sales history, which can be a faster route to working capital than traditional bank lending.

Conclusion: Explanation of Shopify Payments

Shopify Payments is one of the features you get with most Shopify plans. It is a good way to take payments online with fees that are both reasonable and easy to understand. If you spend more on your Shopify plan, the transaction fee decreases. But that does not mean you should always pick the higher plan; the math only works once your monthly volume justifies it. Shopify Payments is just one part of your payment set up on Shopify.

Beyond payments, the rest of your store’s operations matters too. Domain renewal, theme updates, app management, and customer-data handling all sit in the same admin and connect into how payments flow. Treating these as one connected system rather than separate problems is what separates the merchants who scale smoothly from the ones who hit operational walls.

Written by:

Avi Klein

Vast experience in the online world. Shopify Expert, SEO expert, Web developer and consultant to several online companies. 2 time Shopify top affiliate award (2022 + 2024). Read more about our approach to reviewing themes and apps.